Thepurpose of this engagement T&C isto set out the basis upon which you have instructed us in connection with youraffairs. Accountancy servicesWeagree to finalize the accounts from your accounting records and draft accountsprepared by you and from the information supplied to us either directly by youor under your authority. Asmembers of the Institute of Financial Accountants, we are able to prepare andsign the final accounts for sole traders, partnerships and companies below thestatutory audit limit. Wewill examine the records and make such inquiries as we consider necessary toenable us to prepare the accounts for you but will not be performing an audit. Ifyour board of directors has not already agreed and documented minutes regardinga decision not to have an audit, it should do so without delay, and copy of therelevant minute should be sent to us for our records. Other services Weare able to offer a range of supplementary accountancy services, such asinvestigating irregularities for suspected fraud and these can be performedupon our receiving specific instructions from you. We understand people’s needsvary and are happy to tailor our services to your specific identifiedrequirements. Asto the specific tasks to be performed, you agree that:Youwill be responsible for bookkeeping i.e the records of receiptsand payments;Youwill be responsible for reconcilingthe balances of monthly bank statements;Youwill be responsible for keeping posted and balanced the purchaseand sales ledgers and the nominal ledger regularly;Youwill be responsible for preparing a detailed list of ledgerbalances regularly and at the end of the year;Youwill be responsible for preparing details of the annual year-endstocktaking suitably priced and extended;We willbe responsible for calculating and submitting the PAYE tax liability returns for your employees;Youwill be responsible for Pension Auto Enrolment complianceYou will be responsible forpreparing and submission of your VAT returns, we are happy to provide anyguidance on vat matters;You will be responsible forassistance and advice on your computer business software;You will be responsible forreviewing your budgets and budgetary controlsYou will be responsible forreviewing and advising on costing.Shouldyou require further or different services we would be happy to supply them onrequest. These include preparing accounting reports in support of claims, (e.g.for insurance company certificates or for grants) or about your business (or anaspect of your business) or about a business you hope to acquire, managementaccounting and business advice. In the event that you would like us toundertake such work for you we will send you a further letter setting out thebasis of our instructions. Revenue tax returns Youwill appreciate that the responsibility for the prevention and detection ofirregularities rests with you, and our examination of the accounting recordsshould not be relied upon to disclose irregularities that may exist. We shall discussthe accounts with you prior to their finalization and after any adjustmentsarising from these discussions are made, we shall ask you to approve theaccounts by asking you to sign the following statement that will beincorporated into the accounts:“Iapprove these accounts and confirm that I have made available all relevantrecords and information for their preparation”. Weshall send you a questionnaire each April which we hope you will find helpfulin collating the material which you will need to send to us. You may find ithelpful to arrange with your bank, building society, and broker for them tosend the information directly to us on a regular basis and we shall be pleasedto help establish such arrangements. Thereturn will be sent to you to review and sign before it is submitted to the HM Revenue& Customs on your behalf. It is essential that the return iscarefully reviewed by you to check that no source of income or gain has beeninadvertently omitted, since the accuracy of the return remains your legalresponsibility. Wewill also advise you of your tax position for the year and the likely paymentdate of liabilities.Thelate submission of a tax return, as well as the omission of a source of incomeor gain, will give rise to a penalty. We therefore recommend that tax returnsare submitted ideally by 30 September, and certainly no later than 1st Januaryfollowing the tax year. Tomeet that timetable materials should reach us as soon as possible after 5thApril each year and preferably no later than the 31st August to ensurecompletion by the deadline.Wewill be happy to review the interim payments on account shown on the HMRCstatement of account, apply for any postponement which may be necessary andadvise you in connection with the payment of tax due thereon. Wehave asked you to sign the appropriate authority which enables the HMRC to sendus copies of the statement of account. Responsibilities Weare bound by Code of Ethics of our professional institute, the Institute ofFinancial Accountants, and accept instructions to act for you on the basis thatwe will act in accordance therewith. You or your staff will deal with allmatters required to be completed by officials of your business; for example,VAT returns, PAYE, forms P11D and CT61, but we should be pleased to advise youand undertake these tasks on your behalf if so requested. Professional Indemnity Insurance Underthe provisions of the EU Service Directive 2006/123/EC of 12 December 2006 onservices in the internal market, the UK has implemented legislation (SI 2999 of2009) which sets out the duties of service providers, including whatinformation has to be made available to a recipient of a professional service:‘wherethe provider is subject to a requirement to hold any professional liabilityinsurance or guarantee, information about the insurance or guarantee and inparticular- (i) the contact details of the insurer or guarantor, and (ii) theterritorial coverage of the insurance or guarantee.’Accordingly,we state that we are required to hold Professional Indemnity Insurance and thisis currently held with CaunceO'Hara & Company Limited82 King Street, Manchester, M2 4WQTel - 03333 211 403 , Fax - 0161 839 2100Email -
[email protected] territorial coverage of our PII is worldwide with theexception of the United States. Special work Wewould be pleased, if instructed, to represent you on any tax appeal. Due to a specialconcession, members of the Institute of Financial Accountants are able toinstruct Counsel direct on your behalf and we can do this if you require, foran additional fee (to be agreed).Inthe event that you would like us to undertake such work for you we will sendyou a further letter setting out the basis of our instructions. Investment Advice Thisletter does not instruct us to give you investment advice. This firm is notregulated by a “IFA” or by the Financial Services Authority directly under the FinancialServices and Markets Act 2000. You should consult an Independent FinancialAdviser (regulated by the Financial Services Authority). Complaints Ifyou are dissatisfied with any of the work we undertake, please contact yourassignment partner or our senior partner. He or she will try to resolve mattersto your satisfaction. It is important that we receive feedback, good or bad, toenable our service to you to continually improve. Thisprocedure does not affect in any way your right to contact the Institute ofFinancial Accountants if you remain dissatisfied with the outcome of ourcomplaints procedure. If you wish to make a complaint to the IFA, you shouldlook on the IFA website and download a Complaints Form from www.ifa.org.uk Director,Professional StandardsTheInstitute of Financial AccountantsInstitute of Financial AccountantsCS111, Clerkenwell Workshops27-31 Clerkenwell Close, Farringdon, London, EC1R 0ATEmil:
[email protected], Website:www.ifa.org.ukNB:The IFA does not become involved with arbitration in fees disputes. Client IdentificationIncommon with all other professional accountancy and taxation firms, we arerequired to establish positive identification of our clients, under the UK anti-moneylaundering legislation (the Money Laundering Regulations 2020).Wewill request from you, and retain for a period of five years after theconclusion of our business with you, such information and documentation as werequire for these purposes and/or make searches of appropriate electronicdatabases. We regret that this law applies even if you have already been ourclient for some years.Asone of the requirements of the Money Laundering Regulations we will require youto produce evidence of identity,such as a passport, and evidence ofresidence. It may be appropriate under the Regulations to seek renewal of thesedocuments from time to time. Weare supervised under the above Regulations by the Institute of FinancialAccountants.Inaccordance with the Proceeds of Crime Act 2002 and Money Laundering Regulations2007 you agree to waive your right to confidentiality to the extent of anyreport made, document provided or information disclosed to the National CrimeAgency (“NCA”). In signing your copy of this Engagement Letter, you alsoacknowledge that we are required to report directly to NCA, without prior orsubsequent reference to you or your representatives, if during the course ofundertaking any assignment the person undertaking the role of Money LaunderingReporting Officer for this firm becomes suspicious of possible moneylaundering. Under the provisions of the Proceeds of Crime Act 2002, you willnot be informed if or when such a step has been taken. Client accounts Whilewe do not normally hold clients’ monies, should we do so for you in the courseof this retainer they will be paid into a separate client account at our bank.We will pay you any interest earned from the money whilst it is held by us inthat account. General Data Protection Regulation(GDPR). We may obtain, use, process and disclose personal data aboutyou in order that we may discharge the services agreed under this engagementletter, and for other related purposes including updating and enhancing clientrecords, analysis for management purposes and statutory returns, crimeprevention and legal and regulatory compliance. We confirm when processing dataon your behalf that we will comply with the relevant provisions of the GeneralData Protection Regulation (GDPR). Fees Weare pleased to offer fixed fee perannum payable monthly via direct debit (DD) covering following services. Feequoted on Accounting Firm platform is for items 1, 2 & 3 for ltd company typeclients. Statutory Accounts for companies’ house and detailed accounts for HMRC Corporation Tax return Payroll for two employees, every extra employee is £5 per payslip Personal tax return £150 (income from company only i.e. salary + dividends, any other source of personal income is subject to extra charges) Bookkeeping/vat is your responsibility, guidance available. (We can provide bookkeeping services at £25 per hour if needed) Companies House Annual return £45 Fees will be subject to 2% increase in line with inflation every year. Pleasenote any tax/VAT investigation from HMRCis subject to additional fees, wesuggest you should take a separate HMRC investigation insurance to covercost of investigation professional charges. Please ask us for more details ifyou wish to. Duration Onceit has been agreed, this letter will remain effective from one year to the nextuntil this is replaced. This agreement may be ended by either of us givingnotice in writing to the other and we will cease to work from the date webecome aware that this retainer has ended. Any variations to this agreementmust be agreed in writing and you may be required to sign a new engagementletter to continue our instruction.Thisletter of engagement is governed by, and is to be construed in accordance with,the laws of England.Wehope that this letter summarizes the terms under which you have asked us to acton your behalf, in which case we should be grateful if you could kindlyacknowledge receipt of this letter and indicate your agreement to it by signingthe enclosed copy and returning it to us. If you do not agree with ourunderstanding of the agreement, please let us know as soon as practicable. Yourssincerely OmerHanif (FFA) FaradayKeynes Ltd For Client: Youconfirm that you have read and understood the contents of this engagement andrelated terms and conditions and agree that it accurately reflects your fairunderstanding of the services that you require you to undertake. Please notethis engagement T&C could be subject to enhanced scrutiny and might getupdated if further information is unearthed as Accounting Firm platform doesnot allow us to do enhance due diligence at this stage of process.
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